Takeovers Panel clears way for Powerlan’s rights issue

The Takeovers Panel has revoked an interim order made on Tuesday blocking a four-for-one renounceable rights issue by software and services company
Powerlan
.

The effect of the revocation is that Powerlan’s rights issue, announced January 15, can proceed.

The Panel had made the interim order following a complaint that the issue was designed to frustrate a takeover bid by Alpha Growth International (Australia), spearheaded by Powerlan’s former chief executive, Tomislav Matic.

Powerlan lodged a prospectus with the ASX on Friday, the same day Mr Matic announced Alpha’s takeover bid.

On Tuesday, Alpha made an application to the Panel submitting that, among other things, that the rights issue was structured in a way that affects the control of Powerlan with the effect of frustrating Alpha’s takeover bid.

The Panel is hearing the application, but according to a statement said it “did not consider that the rights issue proceeding would necessarily inhibit its ability to formulate a suitable remedy in the event it finds that unacceptable circumstances exist".